CIRQUE DU SOLEIL FILES FOR BANKRUPTCY, AXES 3,500 JOBS

The Montreal-based Cirque du Soleil, the producer of a number of Las Vegas acrobatic shows, has filed for bankruptcy, Jordan Valinsky wrote for CNN Business late of June 29, 2020.

In an announcement Monday, the Montreal-based company blamed its bankruptcy and the axing of 3,500 jobs on the "immense disruption and forced show closures as a result of the Covid-19 pandemic" and is aiming to restructure its debt with assistance from the Canadian government and private equity firms.

The filing comes three months after it temporarily suspended production of its shows, including six in Las Vegas. It also has about 10 shows on tour across the world, including "O," "Michael Jackson One," and "The Beatles LOVE."

Cirque entered a "stalking horse" bid from its largest backers, including a mix of multinational private equity firms from the United States, China and Canada for $420 million. That offer is intended to be a starting point in an auction to draw other bidders. The company has also received $300 million in fresh funding to "support a successful restart, provide relief for Cirque du Soleil's affected employees and partners, and assume certain of the company's outstanding liabilities," it said in the release.